Infosys Hitting a Wall

Infosys (INFY) just isn't growing anymore, as you see in this chart from an Isec report. If you look at total active clients, this number peaked 2 quarters ago. Now, the global economy is contracting, so this is perhaps a result of this. But it's interesting to note that the potential market for Indian IT isn't the limitless ocean it used to be.

Total clients are not growing, and billing rates are headed down (since clients are renegotiating):



More reasons to be underweight INFY.

Disclosure: None

Comments

[Smartass_Asian:]

It's downhill for Infosys going forward. Murthy and other idiots in the senior management with their sanctimonious holier-than-thou attiutdes will have to eat their hats.

Apr 16 07:40 AM

[Boss:]

It's on account of world wide recession. The moment the world economy is back on track, Infy should perform well. No cause for concern at this point of time. Infy has reserves of over $2 billion.

Apr 16 09:46 AM